I need the attached document but in excel showing all work.

Comp Problem # 2 Student: ___________________________________________________________________________ 1. Wilt's has earnings per share of $2.98 and dividends per share of $.35. What is the firm's sustainable rate of growth if its return on assets is 14.6% and its return on equity is 18.2%? A. 2.14 % B. 1.71 % C. 12.89 % D. 16.06 % 2. A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 14% rate of return? A. $48.0 9 B. $52.9 6 C. $54.0 2 D. $61.5 8 3. What dividend yield would be reported in the financial press for a stock that currently pays a $1 dividend per quarter and the most recent stock price was $40? A. 2.5 % B. 4.0 % C. 10.0 % D. 5.0 % 4. If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year and the dividend payout ratio is 40%, what is the stock's current price? A. $24.3 0 B. $18.0 0 C. $22.2 2 D. $40.5 0 5. What is the current price of a share of stock for a firm with $5 million in balancesheet equity, 500,000 shares of stock outstanding, and a price/book value ratio of 4? A. $2.5 0 B. $10.0 0 C. $20.0 0 D. $40.0 0 6. A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now? A. $82.2 0 B. $86.2 0 C. $87.2 0 D. $91.2 0 7. A stock currently sells for $50 per share, has an expected return of 15%, and an expected capital appreciation rate of 10%. What is the amount of the expected dividend? A. $2.5 0 B. $2.7 5 C. $3.0 0 D. $3.5 0 8. If the net present value of a project that costs $20,000 is $5,000 when the discount rate is 10%, then the: A. project's IRR equals 10%. B. project's rate of return is greater than 10%. C. net present value of the cash inflows is $4,500. D. project's cash inflows total $25,000. 9. What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%? A. $13,397. 57 B. $14,473. 44 C. $16,081. 60 D. $33,748. 58 10. What is the maximum that should be invested in a project at time zero if the inflows are estimated at $50,000 annually for 3 years, and the cost of capital is 9%? A. $101,251. 79 B. $109,200. 00 C. $126,564. 73 D. $130,800. 00 11. What is the maximum amount a firm should pay for a project that will return $15,000 annually for 5 years if the opportunity cost is 10%? A. $24,157. 65 B. $56,861. 80 C. $62,540. 10 D. $48,021. 19 12. What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from today? A. 19.91 % B. 16.67 % C. 15.84 % D. 22.09 % 13. What is the IRR of a project that costs $100,000 and provides cash inflows of $17,000 annually for 6 years? A. 0.57 % B. 1.21 % C. 5.69 % D. 12.10 % 14. What is the minimum number of years in which an investment costing $210,000 must return $65,000 per year at a discount rate of 13% in order to be an acceptable investment? A. 8.69 years B. 5.37 years C. 7.51 years D. 4.46 years 15. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and a market value of $25,000. Ignoring taxes, what is the opportunity cost of this machine? A. $75,00 0 B. $25,00 0 C. $20,00 0 D. $5,00 0 16. What is the effect on a firm's net working capital if a new project requires a $30,000 increase in inventory, a $10,000 increase in accounts receivable, a $35,000 increase in machinery, and a $20,000 increase in accounts payable? A. $5,00 0 B. $10,00 0 C. $20,00 0 D. $55,00 0 17. A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project's cash flow from net working capital at time zero? A. $8,00 0 B. $8,00 0 C. $6,00 0 D. $6,00 0 18. Net working capital is expected to increase by $25,000 over the 5-year life of a project. What is the effect of net working capital on the project's net present value if the cost of capital is 15%? A. NPV will not be affected because the $25,000 will all be recouped. B. NPV will increase by $12,429.42. C. NPV will decrease by $25,000. D. NPV will decrease by $12,570.58. 19. Your forecast shows $500,000 annually in sales for each of the next 3 years. If your second and third year predictions have failed to incorporate the 3% expected annual inflation, how far off in total dollar sales is your 3-year forecast? A. $45,45 0 B. $60,90 0 C. $52,55 0 D. $76,25 0 20. What is the annual depreciation tax shield for a profitable firm in the 30% marginal tax bracket with $100,000 of annual depreciation expense? A. $10,50 0 B. $30,00 0 C. $35,00 0 D. $65,00 0